Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. A stronger role of the private sector in achieving inclusive and sustainable growth in developing countries

Having a decent job is widely recognised as the best way out of poverty. The private sector provides some 90% of jobs in developing countries, and is thus an essential partner in the fight against poverty. It is also needed as an investor in sustainable agricultural production if the world is to meet the challenge of feeding 9 billion people by 2050. And through innovation and investment in low-carbon and resource-efficient solutions, it will have a major role to play in the transformation towards an inclusive green economy.

Given the private sector’s potential for generating inclusive and sustainable growth in developing countries, private stakeholders including businesses, financial intermediaries, associations and workers and employers organisations are emerging as ever more active in the development field, both as a source of finance and as partners for governments, non-governmental organisations (NGOs) and donors.

A recent evaluation of EU support for private sector development between 2004 and 2010 confirmed the important contribution made by the Commission to private sector development in partner countries, and identified ways of improving future programmes and strategies, which include: (i) putting more emphasis on decent job creation; (ii) mainstreaming private sector engagement across the EU’s support portfolio; (iii) promoting more effectively cross-cutting issues such as the Decent Work Agenda, women and youth employment, and human rights, and (iv) enhancing the operational effectiveness and impact of private sector development support by improving diagnostics and results measurement.

Building on past achievements and lessons, and taking account of feedback received from consultations with stakeholders, this Communication proposes a strategic framework for strengthening the role of the private sector in achieving inclusive and sustainable growth. It consists of two levels at which the EU believes it can add value and effectively complement actions by its Member States, development financing institutions and other development partners.

• Primary Source

ESO: Background information: EU to boost private sector's role on inclusive growth in developing countries http://www.europeansources.info/record/press-release-eu-to-boost-private-sectors-role-on-inclusive-growth-in-developing-countries/

EUR-Lex: COM(2014)263: Follow the progress of this communication through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2014:263:FIN

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